BROOKLYN, N.Y., July 24, 2014 (GLOBE NEWSWIRE) -- Dime Community Bancshares, Inc. (Nasdaq:DCOM) (the "Company" or "Dime"), the parent company of The Dime Savings Bank of Williamsburgh (the "Bank"), today reported financial results for the quarter ended June 30, 2014. Consolidated net income for the quarter ended June 30, 2014 was $10.5 million, or $0.29 per diluted share, compared to $10.0 million, or $0.28 per diluted share, for the quarter ended March 31, 2014, and $12.0 million, or $0.34 per diluted share, for the quarter ended June 30, 2013.
Vincent F. Palagiano, Chairman and Chief Executive Officer of Dime, commented, "During the most recent quarter, a reserve recapture of $1.1 million was recognized, and the Bank also experienced seasonal reductions in salaries, benefits and occupancy expenses. More importantly, the rate of decline in net interest margin appears to be slowing."
Mr. Palagiano concluded, "The Bank reduced its loan commitments and closings in the second quarter in an effort to calibrate the year-to-date portfolio growth and account for the purchase of approximately $200 million of performing multifamily loans in the first quarter. As a result, loan originations of $183.5 million were below the first quarter originations of $216.3 million. The loan pipeline has moved back up to $164.3 million as of June 30, 2014, keeping the Bank on track to meet its 2014 planned portfolio growth of approximately 12%."
Management's Discussion of Quarterly Operating Results
- Net Interest Margin
As previously forecasted, net interest margin ("NIM") continued to contract, albeit at a declining rate, as a result of continued mortgage loan refinancing activity that began in late 2012. Reported NIM was 2.96% during the quarter ended June 30, 2014 compared to 3.06% during the March 2014 quarter, and 3.24% during the December 2013 quarter. Net interest income recognized from loan prepayment activity, which varies from quarter to quarter, positively impacted the Company's NIM during each of the reporting periods presented. For the second quarter 2014, income from prepayment activity was $2.4 million, or 23 basis points, compared to $2.7 million, or 27 basis points, during the quarter ended March 31, 2014. The "core" NIM, which excludes the impact of these items, decreased from 2.79% during the March 2014 quarter to 2.73% during the June 2014 quarter, caused primarily by both a reduction of 7 basis points in the average yield on interest earning assets, and a 3 basis point increase in the average cost of interest bearing liabilities. Core NIM for the December 2013 quarter was 2.90%.
In general, both loan amortization and prepayments have moderated during the first six months of 2014, compared to their historically high levels during 2013, consistent with the forecast provided in the Outlook section of the Company's April 24, 2014 earnings release.
The 3 basis point increase in the cost of funds during the June 2014 quarter reflected both a higher average balance of long-term borrowings, and an increase of 2 basis points in the average cost of deposits. The growth in the average balance of long-term borrowings resulted from efforts to manage interest rate risk during a period in which the average duration on the Company's loan portfolio steadily increased (as borrowers seek longer repricing terms on newly originated or refinanced loans). The Company has increased the average duration on its borrowings from 1.9 years at December 31, 2013 to 2.1 years at June 30, 2014. The increase in the cost of deposits reflected promotional rate deposit gathering that occurred during the first six months of 2014.
- Net Interest Income
Net interest income ("NII") was $30.6 million in the quarter ended June 30, 2014, up $339,000 from $30.3 million reported in the March 2014 quarter, and down $3.2 million from $33.8 million reported in the June 2013 quarter. The increase from the March 2014 quarter was due to growth of $178.6 million in average interest earning assets from the March 2014 quarter to the June 2014 quarter, reflecting the balance sheet growth experienced during the first six months of 2014, much of which occurred late in the March 2014 quarter. The NII reduction from the June 2013 quarter resulted from significantly lower yields recognized on the Company's interest earning assets.
- Provision/Allowance For Loan Losses
A recapture of a portion of the Allowance for loan loss reserve resulted in a credit, rather than a charge, to earnings for the loan loss provision in the second quarter of $1.1 million, and occurred due primarily to the favorable resolution of two large impaired loans.
- Non-Interest Income
Non-interest income was $1.6 million for the quarter ended June 30, 2014, down $1.5 million from the previous quarter.
During the quarter ended March 31, 2014, the Bank reversed a $1.0 million liability related to the first loss position on loans repurchased during the quarter. This reversal was recognized as mortgage banking income (a component non-interest income) during the March 2014 quarter. No such activity occurred during the June 2014 quarter.
During the quarter ended March 31, 2014, Dime also recognized a non-recurring gain of $649,000 on the sale of real estate. There were no such sales during the June 2014 quarter.
- Non-Interest Expense
Non-interest expense was $15.3 million in the quarter ended June 30, 2014, approximately $500,000 below the $15.8 million level experienced in the March 2014 quarter, due primarily to seasonal fluctuations in salaries, benefits and occupancy expenses. Recent business initiatives that are expected to contribute to non-interest expense during 2014 did not significantly impact the June 2014 quarter, thus the actual operating expenses were $500,000 below the forecasted level.
Non-interest expense was 1.42% of average assets during the most recent quarter, compared to 1.53% during the March 2014 quarter. The efficiency ratio approximated 47.7% during the June 2014 quarter.
- Income Tax Expense
The effective tax rate approximated 41.9% during the most recent quarter, generally in line with the 41.0% forecasted level.
Management's Discussion of the June 30, 2014 Balance Sheet
Total assets were $4.30 billion at June 30, 2014, up $21.3 million, or 0.5%, from March 31, 2014.
- Real Estate Loans
Real estate loan net portfolio growth was $29.0 million for the quarter. Real estate loan originations were $183.5 million, at a weighted average interest rate of 3.66%. Of this amount, $37.7 million represented loan refinances from the existing portfolio. Approximately 42% of the loans originated during the quarter were 7-year adjustable rate loans. Loan amortization and satisfactions totaled $153.8 million, or 15.6% (annualized) of the quarterly average portfolio balance, at an average rate of 4.91%. The average yield on the loan portfolio (excluding income recognized from prepayment activity) during the quarter ended June 30, 2014 was 4.01%, compared to 4.00% during the March 2014 quarter and 4.44% during the June 2013 quarter.
- Credit Summary
Non-performing loans were $12.3 million, or 0.31% of total loans, at June 30, 2014, compared to $12.8 million, or 0.32% of total loans, at March 31, 2014. The decline in dollar amount resulted primarily from a reduction in principal balance of one non-performing loan during the period. Accruing loans delinquent between 30 and 89 days were $2.3 million, or approximately 0.06% of total loans, at June 30, 2014, compared to $470,000, or 0.01% of total loans, at March 31, 2014.
As a result of both the net reduction in the allowance balance and the growth in the loan portfolio, the allowance for loan losses as a percentage of total loans declined from 0.52% at March 31, 2014 to 0.49% at June 30, 2014.
At June 30, 2014, non-performing assets represented 3.9% of the sum of tangible capital plus the allowance for loan losses (this statistic is otherwise known as the "Texas Ratio") (see table on page 11). This number compares very favorably to both industry and regional averages.
- Deposits and Borrowed Funds
Deposits grew by $66.1 million during the most recent quarter, providing the funding for the loan growth experienced during the period, reflecting net growth of $77.7 million in money market deposits. Much of this growth was driven by money market promotional activities. Mortgagor escrow deposits declined $33.1 million during the quarter ended June 30, 2014 due to seasonal disbursements. Due to sufficient deposit funding, the Company did not have the opportunity to take down additional Federal Home Loan Bank of New York ("FHLBNY") advances during the June 2014 quarter.
While not active during the most recent quarter, the Bank intends to continue the use of longer-term FHLBNY advances to supplement deposit funding.
- Capital
The Company's consolidated tangible capital increased $6.7 million during the most recent quarter, and the consolidated Tier 1 core leverage ratio (tangible common equity to tangible assets) was 9.36% of tangible assets at June 30, 2014, an increase of 11 basis points from March 31, 2014.
The Bank's tangible (leverage) capital ratio was 9.20% at June 30, 2014, down slightly from 9.22% at March 31, 2014, due to asset growth during the June 2014 quarter. The Bank's Total Risk-Based Capital Ratio was 12.85% at June 30, 2014, compared to 13.13% at March 31, 2014.
Reported diluted EPS exceeded the quarterly cash dividend rate per share by 107% during the quarter ended June 30, 2014, equating to a 48% payout ratio. Additions to capital from earnings during the most recent quarterly period enabled tangible book value per share to increase $0.14 sequentially during the most recent quarter, to $10.78 at June 30, 2014.
Outlook for the Quarter Ending September 30, 2014
At June 30, 2014, Dime had outstanding loan commitments totaling $164.3 million, all of which are likely to close during the quarter ending September 30, 2014, at an average interest rate approximating 3.44%.
Balance sheet growth remains targeted to approximate 8.0% - 10.0% for the year ending December 31, 2014. This target remains subject to change to reflect market conditions. Loan prepayments and amortization are currently projected to run in the 15% - 20% range through the remainder of the year.
On the funding side of the balance sheet, deposit funding costs are expected to remain near current historically low levels through the third quarter of 2014. The Bank has $117.2 million of CDs maturing at an average cost of 1.12% during the quarter ending September 30, 2014. Offering rates on 12-month term CDs currently approximate 40 basis points. The Bank has $25.0 million in borrowings due to mature during the quarter ending September 30, 2014 at an average cost of 3.30%. In the coming quarter, management expects to utilize a combination of FHLBNY advances and retail deposits to fund growth. Advances are anticipated to be a combination of both short-term and longer duration (3 to 5 year fixed terms) to meet various funding strategies.
The Bank anticipates continuing promotional deposit campaigns throughout the third quarter of 2014 (although at a reduced level compared to the first six months of 2014), the success of which will determine the direction and degree of both deposit and borrowings funding, as well as the overall cost of funds for the September 2014 quarter.
Loan loss reserve provisions or credits will likely depend upon annualized loan portfolio growth, incurred and anticipated losses, and the overall credit quality of the loan portfolio.
Absent any unforeseen items, non-interest expense is expected to approximate $15.5 million during the September 2014 quarter. The Company projects that the consolidated effective tax rate will approximate 41.0% in the September 2014 quarter.
ABOUT DIME COMMUNITY BANCSHARES, INC.
The Company (Nasdaq:DCOM) had $4.30 billion in consolidated assets as of June 30, 2014, and is the parent company of the Bank. The Bank was founded in 1864, is headquartered in Brooklyn, New York, and currently has twenty-five branches located throughout Brooklyn, Queens, the Bronx and Nassau County, New York. More information on the Company and Dime can be found on the Dime's Internet website at www.dime.com.
This News Release contains a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These statements may be identified by use of words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "outlook," "plan," "potential," "predict," "project," "should," "will," "would" and similar terms and phrases, including references to assumptions.
Forward-looking statements are based upon various assumptions and analyses made by the Company in light of management's experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors (many of which are beyond the Company's control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. These factors include, without limitation, the following: the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Company's control; there may be increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment may reduce interest margins; changes in deposit flows, loan demand or real estate values may adversely affect the business of Dime; changes in accounting principles, policies or guidelines may cause the Company's financial condition to be perceived differently; changes in corporate and/or individual income tax laws may adversely affect the Company's financial condition or results of operations; general economic conditions, either nationally or locally in some or all areas in which the Company conducts business, or conditions in the securities markets or the banking industry may be less favorable than the Company currently anticipates; legislation or regulatory changes may adversely affect the Company's business; technological changes may be more difficult or expensive than the Company anticipates; success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates; or litigation or other matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than the Company anticipates.
| DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES | |||
| UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | |||
| (In thousands except share amounts) | |||
| June 30, | March 31, | December 31, | |
| 2014 | 2014 | 2013 | |
| ASSETS: | |||
| Cash and due from banks | $ 57,213 | $ 66,120 | $ 45,777 |
| Investment securities held to maturity | 5,330 | 5,324 | 5,341 |
| Investment securities available for sale | 3,766 | 3,654 | 18,649 |
| Trading securities | 7,058 | 6,948 | 6,822 |
| Mortgage-backed securities available for sale | 29,015 | 30,652 | 31,543 |
| Federal funds sold and other short-term investments | 250 | -- | -- |
| Real Estate Loans: | |||
| One-to-four family and cooperative/condominium apartment | 74,442 | 76,772 | 73,956 |
| Multifamily and loans underlying cooperatives (1) | 3,156,599 | 3,170,747 | 2,917,380 |
| Commercial real estate | 736,129 | 690,398 | 700,606 |
| Construction and land acquisition | -- | 222 | 268 |
| Unearned discounts and net deferred loan fees | 5,381 | 5,382 | 5,170 |
| Total real estate loans | 3,972,551 | 3,943,521 | 3,697,380 |
| Other loans | 2,440 | 1,873 | 2,139 |
| Allowance for loan losses | (19,633) | (20,429) | (20,153) |
| Total loans, net | 3,955,358 | 3,924,965 | 3,679,366 |
| Premises and fixed assets, net | 25,875 | 26,067 | 29,701 |
| Federal Home Loan Bank of New York capital stock | 53,269 | 53,593 | 48,051 |
| Other Real Estate Owned | 18 | 18 | 18 |
| Goodwill | 55,638 | 55,638 | 55,638 |
| Other assets | 108,904 | 107,390 | 107,284 |
| TOTAL ASSETS | $ 4,301,694 | $ 4,280,369 | $ 4,028,190 |
| LIABILITIES AND STOCKHOLDERS' EQUITY: | |||
| Deposits: | |||
| Non-interest bearing checking | $ 172,876 | $ 176,636 | $ 174,457 |
| Interest Bearing Checking | 79,076 | 83,928 | 87,301 |
| Savings | 377,618 | 379,118 | 376,900 |
| Money Market | 1,156,494 | 1,078,841 | 1,040,079 |
| Sub-total | 1,786,064 | 1,718,523 | 1,678,737 |
| Certificates of deposit | 867,016 | 868,451 | 828,409 |
| Total Due to Depositors | 2,653,080 | 2,586,974 | 2,507,146 |
| Escrow and other deposits | 76,930 | 110,062 | 69,404 |
| Federal Home Loan Bank of New York advances | 1,018,150 | 1,033,150 | 910,000 |
| Trust Preferred Notes Payable | 70,680 | 70,680 | 70,680 |
| Other liabilities | 34,330 | 37,868 | 35,454 |
| TOTAL LIABILITIES | 3,853,170 | 3,838,734 | 3,592,684 |
| STOCKHOLDERS' EQUITY: | |||
| Common stock ($0.01 par, 125,000,000 shares authorized, 52,871,443 shares, 52,862,963 shares and 52,854,483 shares issued at June 30, 2014, March 31, 2014 and December 31, 2013, respectively, and 36,858,556 shares, 36,720,170 shares and 35,712,951 shares outstanding at June 30, 2014, March 31, 2014 and December 31, 2013, respectively) | 529 | 528 | 528 |
| Additional paid-in capital | 253,840 | 252,680 | 252,253 |
| Retained earnings | 413,437 | 408,009 | 402,986 |
| Accumulated other comprehensive loss, net of deferred taxes | (4,408) | (4,637) | (4,759) |
| Unallocated common stock of Employee Stock Ownership Plan | (2,660) | (2,718) | (2,776) |
| Unearned Restricted Stock Award common stock | (4,128) | (2,680) | (3,193) |
| Common stock held by the Benefit Maintenance Plan | (9,164) | (9,012) | (9,013) |
| Treasury stock (16,012,887 shares, 16,142,793 shares and 16,141,532 shares at June 30, 2014, March 31, 2014 and December 31, 2013, respectively) | (198,922) | (200,535) | (200,520) |
| TOTAL STOCKHOLDERS' EQUITY | 448,524 | 441,635 | 435,506 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 4,301,694 | $ 4,280,369 | $ 4,028,190 |
| (1) While the loans within this category are often considered "commercial real estate" in nature, multifamily and loans underlying cooperatives are here reported separately from commercial real estate loans in order to emphasize the residential nature of the collateral underlying this significant component of the total loan portfolio. | |||
| DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES | |||
| UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | |||
| (Dollars In thousands except share and per share amounts) | |||
| For the Three Months Ended | |||
| June 30, | March 31, | June 30, | |
| 2014 | 2014 | 2013 | |
| Interest income: | |||
| Loans secured by real estate | $ 41,973 | $ 40,861 | $ 44,692 |
| Other loans | 29 | 25 | 25 |
| Mortgage-backed securities | 236 | 248 | 354 |
| Investment securities | 136 | 70 | 103 |
| Federal funds sold and other short-term investments | 536 | 522 | 462 |
| Total interest income | 42,910 | 41,726 | 45,636 |
| Interest expense: | |||
| Deposits and escrow | 4,992 | 4,621 | 5,132 |
| Borrowed funds | 7,324 | 6,850 | 6,752 |
| Total interest expense | 12,316 | 11,471 | 11,884 |
| Net interest income | 30,594 | 30,255 | 33,752 |
| Provision for (recapture of) loan losses | (1,130) | 281 | 28 |
| Net interest income after provision for loan losses | 31,724 | 29,974 | 33,724 |
| Non-interest income: | |||
| Service charges and other fees | 769 | 655 | 827 |
| Mortgage banking income, net | 82 | 999 | 112 |
| Gain on sale of securities and other assets | -- | 649 | -- |
| Gain on trading securities | 63 | 14 | (17) |
| Other | 651 | 743 | 799 |
| Total non-interest income | 1,565 | 3,060 | 1,721 |
| Non-interest expense: | |||
| Compensation and benefits | 9,115 | 9,508 | 9,298 |
| Occupancy and equipment | 2,392 | 2,750 | 2,506 |
| Federal deposit insurance premiums | 524 | 505 | 445 |
| Other | 3,267 | 3,060 | 3,098 |
| Total non-interest expense | 15,298 | 15,823 | 15,347 |
| Income before taxes | 17,991 | 17,211 | 20,098 |
| Income tax expense | 7,531 | 7,177 | 8,059 |
| Net Income | $ 10,460 | $ 10,034 | $ 12,039 |
| Earnings per Share ("EPS"): | |||
| Basic | $ 0.29 | $ 0.28 | $ 0.34 |
| Diluted | $ 0.29 | $ 0.28 | $ 0.34 |
| Average common shares outstanding for Diluted EPS | 35,957,291 | 35,889,584 | 35,048,063 |
| For the Six Months Ended | |||
| June 30, | June 30, | ||
| 2014 | 2013 | ||
| Interest income: | |||
| Loans secured by real estate | $ 82,834 | $87,840 | |
| Other loans | 54 | 50 | |
| Mortgage-backed securities | 484 | 813 | |
| Investment securities | 206 | 232 | |
| Federal funds sold and other short-term investments | 1,058 | 1,006 | |
| Total interest income | 84,636 | 89,941 | |
| Interest expense: | |||
| Deposits and escrow | 9,613 | 10,332 | |
| Borrowed funds | 14,174 | 13,542 | |
| Total interest expense | 23,787 | 23,874 | |
| Net interest income | 60,849 | 66,067 | |
| Provision for (recapture of) loan losses | (849) | 185 | |
| Net interest income after provision for loan losses | 61,698 | 65,882 | |
| Non-interest income: | |||
| Service charges and other fees | 1,424 | 1,539 | |
| Mortgage banking income, net | 1,082 | 273 | |
| Gain on sale of securities and other assets | 649 | 110 | |
| Gain on trading securities | 77 | 83 | |
| Other | 1,393 | 1,613 | |
| Total non-interest income | 4,625 | 3,618 | |
| Non-interest expense: | |||
| Compensation and benefits | 18,623 | 19,249 | |
| Occupancy and equipment | 5,143 | 5,038 | |
| Federal deposit insurance premiums | 1,029 | 956 | |
| Other | 6,326 | 6,413 | |
| Total non-interest expense | 31,121 | 31,656 | |
| Income before taxes | 35,202 | 37,844 | |
| Income tax expense | 14,708 | 15,235 | |
| Net Income | $ 20,494 | $22,609 | |
| Earnings per Share ("EPS"): | |||
| Basic | $ 0.57 | $0.65 | |
| Diluted | $ 0.57 | $0.65 | |
| Average common shares outstanding for Diluted EPS | 35,923,349 | 34,964,249 | |
| DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES | |||
| UNAUDITED SELECTED FINANCIAL HIGHLIGHTS | |||
| (Dollars In thousands except per share amounts) | |||
| For the Three Months Ended | |||
| June 30, | March 31, | June 30, | |
| 2014 | 2014 | 2013 | |
| Performance Ratios (Based upon Reported Earnings): | |||
| Reported EPS (Diluted) | $0.29 | $0.28 | $0.34 |
| Return on Average Assets | 0.97% | 0.97% | 1.20% |
| Return on Average Stockholders' Equity | 9.36% | 9.12% | 11.93% |
| Return on Average Tangible Stockholders' Equity | 10.62% | 10.36% | 13.53% |
| Net Interest Spread | 2.77% | 2.87% | 3.34% |
| Net Interest Margin | 2.96% | 3.06% | 3.55% |
| Non-interest Expense to Average Assets | 1.42% | 1.53% | 1.53% |
| Efficiency Ratio | 47.66% | 48.46% | 43.24% |
| Effective Tax Rate | 41.86% | 41.70% | 40.10% |
| Book Value and Tangible Book Value Per Share: | |||
| Stated Book Value Per Share | $ 12.17 | $ 12.03 | $ 11.34 |
| Tangible Book Value Per Share | 10.78 | 10.64 | 10.06 |
| Average Balance Data: | |||
| Average Assets | $ 4,311,701 | $ 4,142,607 | $ 4,009,237 |
| Average Interest Earning Assets | 4,127,883 | 3,949,297 | 3,803,526 |
| Average Stockholders' Equity | 446,785 | 440,287 | 403,604 |
| Average Tangible Stockholders' Equity | 393,820 | 387,595 | 355,823 |
| Average Loans | 3,945,287 | 3,821,190 | 3,602,249 |
| Average Deposits | 2,623,386 | 2,530,509 | 2,615,213 |
| Asset Quality Summary: | |||
| Net (recoveries) charge-offs | ($ 335) | $ 6 | $ 57 |
| Non-performing Loans (excluding loans held for sale) | 12,305 | 12,776 | 9,507 |
| Non-performing Loans/ Total Loans | 0.31% | 0.32% | 0.26% |
| Nonperforming Assets (1) | $ 13,224 | $ 13,694 | $ 10,987 |
| Nonperforming Assets/Total Assets | 0.31% | 0.32% | 0.28% |
| Allowance for Loan Loss/Total Loans | 0.49% | 0.52% | 0.57% |
| Allowance for Loan Loss/Non-performing Loans | 159.55% | 159.90% | 215.65% |
| Loans Delinquent 30 to 89 Days at period end | $ 2,274 | $ 470 | $ 159 |
| Consolidated Tangible Stockholders' Equity to Tangible Assets at period end | 9.36% | 9.25% | 9.31% |
| Regulatory Capital Ratios (Bank Only): | |||
| Tier One Core Leverage Ratio (Tangible Common Equity) | 9.20% | 9.22% | 10.27% |
| Tier One Risk Based Capital Ratio | 12.23% | 12.47% | 13.23% |
| Total Risk Based Capital Ratio | 12.85% | 13.13% | 13.95% |
| (1) Amount comprised of total non-accrual loans and the recorded balance of pooled bank trust preferred security investments for which the Bank had not received any contractual payments of interest or principal in over 90 days. | |||
| For the Six Months Ended | ||
| June 30, | June 30, | |
| 2014 | 2013 | |
| Performance Ratios (Based upon Reported Earnings): | ||
| Reported EPS (Diluted) | $0.57 | $0.65 |
| Return on Average Assets | 0.97% | 1.14% |
| Return on Average Stockholders' Equity | 9.24% | 11.29% |
| Return on Average Tangible Stockholders' Equity | 10.49% | 12.81% |
| Net Interest Spread | 2.81% | 3.28% |
| Net Interest Margin | 3.01% | 3.49% |
| Non-interest Expense to Average Assets | 1.47% | 1.59% |
| Efficiency Ratio | 48.06% | 45.55% |
| Effective Tax Rate | 41.78% | 40.26% |
| Book Value and Tangible Book Value Per Share: | ||
| Stated Book Value Per Share | $ 12.17 | $ 11.34 |
| Tangible Book Value Per Share | 10.78 | 10.06 |
| Average Balance Data: | ||
| Average Assets | $ 4,227,155 | $ 3,977,279 |
| Average Interest Earning Assets | 4,038,591 | 3,781,652 |
| Average Stockholders' Equity | 443,536 | 400,599 |
| Average Tangible Stockholders' Equity | 390,724 | 352,888 |
| Average Loans | 3,883,239 | 3,555,040 |
| Average Deposits | 2,576,949 | 2,593,492 |
| Asset Quality Summary: | ||
| Net (recoveries) charge-offs | ($ 329) | $ 233 |
| Non-performing Loans (excluding loans held for sale) | 12,305 | 9,507 |
| Non-performing Loans/ Total Loans | 0.31% | 0.26% |
| Nonperforming Assets (1) | $ 13,224 | $ 10,987 |
| Nonperforming Assets/Total Assets | 0.31% | 0.28% |
| Allowance for Loan Loss/Total Loans | 0.49% | 0.57% |
| Allowance for Loan Loss/Non-performing Loans | 159.55% | 215.65% |
| Loans Delinquent 30 to 89 Days at period end | $ 2,274 | $ 159 |
| Consolidated Tangible Stockholders' Equity to Tangible Assets at period end | 9.25% | 9.31% |
| Regulatory Capital Ratios (Bank Only): | ||
| Tier One Core Leverage Ratio (Tangible Common Equity) | 9.20% | 10.27% |
| Tier One Risk Based Capital Ratio | 12.23% | 13.23% |
| Total Risk Based Capital Ratio | 12.85% | 13.95% |
| (1) Amount comprised of total non-accrual loans and the recorded balance of pooled bank trust preferred security investments for which the Bank had not received any contractual payments of interest or principal in over 90 days. | ||
| DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES | |||
| UNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME | |||
| (Dollars In thousands) | |||
| For the Three Months Ended | |||
| June 30, 2014 | |||
| Average | |||
| Average | Yield/ | ||
| Balance | Interest | Cost | |
| Assets: | |||
| Interest-earning assets: | |||
| Real estate loans | $3,943,414 | $41,973 | 4.26% |
| Other loans | 1,873 | 29 | 6.19 |
| Mortgage-backed securities | 28,487 | 236 | 3.31 |
| Investment securities | 15,585 | 136 | 3.49 |
| Other short-term investments | 138,524 | 536 | 1.55 |
| Total interest earning assets | 4,127,883 | $42,910 | 4.16% |
| Non-interest earning assets | 183,818 | ||
| Total assets | $4,311,701 | ||
| Liabilities and Stockholders' Equity: | |||
| Interest-bearing liabilities: | |||
| Interest Bearing Checking accounts | $79,490 | $60 | 0.30% |
| Money Market accounts | 1,114,169 | 1,548 | 0.56 |
| Savings accounts | 379,819 | 47 | 0.05 |
| Certificates of deposit | 873,733 | 3,337 | 1.53 |
| Total interest bearing deposits | 2,447,211 | 4,992 | 0.82 |
| Borrowed Funds | 1,096,742 | 7,324 | 2.68 |
| Total interest-bearing liabilities | 3,543,953 | $12,316 | 1.39% |
| Non-interest bearing checking accounts | 176,175 | ||
| Other non-interest-bearing liabilities | 144,788 | ||
| Total liabilities | 3,864,916 | ||
| Stockholders' equity | 446,785 | ||
| Total liabilities and stockholders' equity | $4,311,701 | ||
| Net interest income | $30,594 | ||
| Net interest spread | 2.77% | ||
| Net interest-earning assets | $583,930 | ||
| Net interest margin | 2.96% | ||
| Ratio of interest-earning assets to interest-bearing liabilities | 116.48% | ||
| Deposits (including non-interest bearing checking accounts) | $2,623,386 | $4,992 | 0.76% |
| SUPPLEMENTAL INFORMATION | |||
| Loan prepayment and late payment fee income, net of accelerated premium amortization | $2,444 | ||
| Real estate loans (excluding net prepayment and late payment fee income) | 4.01% | ||
| Interest earning assets (excluding net prepayment and late payment fee income) | 3.92% | ||
| Net Interest income (excluding net prepayment and late payment fee income) | $ 28,150 | ||
| Net Interest margin (excluding net prepayment and late payment fee income) | 2.73% | ||
| For the Three Months Ended | |||
| March 31, 2014 | |||
| Average | |||
| Average | Yield/ | ||
| Balance | Interest | Cost | |
| Assets: | |||
| Interest-earning assets: | |||
| Real estate loans | $3,819,210 | $40,861 | 4.28% |
| Other loans | 1,980 | 25 | 5.05 |
| Mortgage-backed securities | 29,475 | 248 | 3.37 |
| Investment securities | 29,597 | 70 | 0.95 |
| Other short-term investments | 69,035 | 522 | 3.02 |
| Total interest earning assets | 3,949,297 | $41,726 | 4.23% |
| Non-interest earning assets | 193,310 | ||
| Total assets | $4,142,607 | ||
| Liabilities and Stockholders' Equity: | |||
| Interest-bearing liabilities: | |||
| Interest Bearing Checking accounts | $84,965 | $59 | 0.28% |
| Money Market accounts | 1,052,680 | 1,315 | 0.51 |
| Savings accounts | 377,705 | 46 | 0.05 |
| Certificates of deposit | 842,130 | 3,201 | 1.54 |
| Total interest bearing deposits | 2,357,480 | 4,621 | 0.79 |
| Borrowed Funds | 1,051,784 | 6,850 | 2.64 |
| Total interest-bearing liabilities | 3,409,264 | $11,471 | 1.36% |
| Non-interest bearing checking accounts | 173,029 | ||
| Other non-interest-bearing liabilities | 120,027 | ||
| Total liabilities | 3,702,320 | ||
| Stockholders' equity | 440,287 | ||
| Total liabilities and stockholders' equity | $4,142,607 | ||
| Net interest income | $30,255 | ||
| Net interest spread | 2.87% | ||
| Net interest-earning assets | $540,033 | ||
| Net interest margin | 3.06% | ||
| Ratio of interest-earning assets to interest-bearing liabilities | 115.84% | ||
| Deposits (including non-interest bearing checking accounts) | $2,530,509 | $4,621 | 0.74% |
| SUPPLEMENTAL INFORMATION | |||
| Loan prepayment and late payment fee income, net of accelerated premium amortization | $2,675 | ||
| Real estate loans (excluding net prepayment and late payment fee income) | 4.00% | ||
| Interest earning assets (excluding net prepayment and late payment fee income) | 3.96% | ||
| Net Interest income (excluding net prepayment and late payment fee income) | $ 27,580 | ||
| Net Interest margin (excluding net prepayment and late payment fee income) | 2.79% | ||
| For the Three Months Ended | |||
| June 30, 2013 | |||
| Average | |||
| Average | Yield/ | ||
| Balance | Interest | Cost | |
| Assets: | |||
| Interest-earning assets: | |||
| Real estate loans | $3,600,154 | $44,692 | 4.97% |
| Other loans | 2,095 | 25 | 4.77 |
| Mortgage-backed securities | 39,669 | 354 | 3.57 |
| Investment securities | 29,101 | 103 | 1.42 |
| Other short-term investments | 132,507 | 462 | 1.39 |
| Total interest earning assets | 3,803,526 | $45,636 | 4.80% |
| Non-interest earning assets | 205,711 | ||
| Total assets | $4,009,237 | ||
| Liabilities and Stockholders' Equity: | |||
| Interest-bearing liabilities: | |||
| Interest Bearing Checking accounts | $92,502 | $70 | 0.30% |
| Money Market accounts | 1,082,789 | 1,406 | 0.52 |
| Savings accounts | 381,137 | 64 | 0.07 |
| Certificates of deposit | 883,881 | 3,592 | 1.63 |
| Total interest bearing deposits | 2,440,309 | 5,132 | 0.84 |
| Borrowed Funds | 813,565 | 6,752 | 3.33 |
| Total interest-bearing liabilities | 3,253,874 | $11,884 | 1.46% |
| Non-interest bearing checking accounts | 174,904 | ||
| Other non-interest-bearing liabilities | 176,855 | ||
| Total liabilities | 3,605,633 | ||
| Stockholders' equity | 403,604 | ||
| Total liabilities and stockholders' equity | $4,009,237 | ||
| Net interest income | $33,752 | ||
| Net interest spread | 3.34% | ||
| Net interest-earning assets | $549,652 | ||
| Net interest margin | 3.55% | ||
| Ratio of interest-earning assets to interest-bearing liabilities | 116.89% | ||
| Deposits (including non-interest bearing checking accounts) | $2,615,213 | $5,132 | 0.79% |
| SUPPLEMENTAL INFORMATION | |||
| Loan prepayment and late payment fee income, net of accelerated premium amortization | $4,692 | ||
| Real estate loans (excluding net prepayment and late payment fee income) | 4.44% | ||
| Interest earning assets (excluding net prepayment and late payment fee income) | 4.31% | ||
| Net Interest income (excluding net prepayment and late payment fee income) | $ 29,060 | ||
| Net Interest margin (excluding net prepayment and late payment fee income) | 3.06% | ||
| DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES | |||
| UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS AND TROUBLED DEBT RESTRUCTURINGS ("TDRs") | |||
| (Dollars In thousands) | |||
| At June 30, | At March 31, | At June 30, | |
| Non-Performing Loans | 2014 | 2014 | 2013 |
| One- to four-family and cooperative/condominium apartment | $ 1,422 | $ 1,382 | $ 1,164 |
| Multifamily residential and mixed use residential real estate (1)(2) | 1,431 | 1,271 | 1,688 |
| Mixed use commercial real estate (2) | 4,400 | 4,400 | 1,150 |
| Commercial real estate | 5,047 | 5,707 | 5,500 |
| Other | 5 | 16 | 5 |
| Total Non-Performing Loans (3) | $ 12,305 | $ 12,776 | $ 9,507 |
| Other Non-Performing Assets | |||
| Other real estate owned | 18 | 18 | 585 |
| Pooled bank trust preferred securities (4) | 901 | 900 | 895 |
| Total Non-Performing Assets | $ 13,224 | $ 13,694 | $ 10,987 |
| TDRs not included in non-performing loans (3) | |||
| One- to four-family and cooperative apartment | 609 | 930 | 941 |
| Multifamily residential and mixed use residential real estate (1)(2) | 1,126 | 1,137 | 1,524 |
| Mixed use commercial real estate (2) | -- | -- | 718 |
| Commercial real estate | 7,033 | 16,458 | 35,516 |
| Total Performing TDRs | $ 8,768 | $ 18,525 | $ 38,699 |
| (1) Includes loans underlying cooperatives. | |||
| (2) While the loans within these categories are often considered "commercial real estate" in nature, they are classified separately in the table above to provide further emphasis of the discrete composition of their underlying real estate collateral. | |||
| (3) Total non-performing loans include some loans that were modified in a manner that met the criteria for a TDR. These non-accruing TDRs, which totaled $9,447 at June 30, 2014, $5,707 at March 31, 2014 and $5,893 at June 30, 2013, are included in the non-performing loan table, but excluded from the TDR amount shown above. | |||
| (4) These assets were deemed non-performing since the Company had, as of the dates indicated, not received any payments of principal or interest on them for a period of at least 90 days. | |||
| PROBLEM ASSETS AS A PERCENTAGE OF TANGIBLE CAPITAL AND RESERVES | |||
| At June 30, | At March 31, | At June 30, | |
| 2014 | 2014 | 2013 | |
| Total Non-Performing Assets | $ 13,224 | $ 13,694 | $ 10,987 |
| Loans 90 days or more past due on accrual status (5) | 2,604 | 2,699 | 974 |
| TOTAL PROBLEM ASSETS | $ 15,828 | $ 16,393 | $ 11,961 |
| Tier One Capital - The Dime Savings Bank of Williamsburgh | $ 389,369 | $ 388,198 | $ 398,710 |
| Allowance for loan losses | 19,633 | 20,429 | 20,502 |
| TANGIBLE CAPITAL PLUS RESERVES | $ 409,002 | $ 408,627 | $ 419,212 |
| PROBLEM ASSETS AS A PERCENTAGE OF TANGIBLE CAPITAL AND RESERVES | 3.9% | 4.0% | 2.9% |
| (5) These loans were, as of the respective dates indicated, expected to be either satisfied, made current or re-financed within the following twelve months, and were not expected to result in any loss of contractual principal or interest. These loans are not included in non-performing loans. | |||